Artificial intelligence (AI) is becoming a frequent topic of conversation in government circles, and finance departments are beginning to consider what it might mean for their work. The latest GFOABC quarterly question invited members to share how their organizations are approaching AI. The responses show a mix of curiosity, caution, and early experimentation.

CURRENT USE OF AI
Most respondents (59 percent) indicated their finance departments are not currently using AI. Still, a substantial 41 percent reported that they are experimenting with or actively using AI tools. This shows that while AI has not yet become standard practice across local governments, a significant minority are already exploring its potential applications.

ASSESSING RISKS AND OPPORTUNITIES
Formal assessments of AI risk and opportunity are not yet common. About 66 percent of respondents said no review has been completed, while 15 percent noted that they had either conducted or planned one. This suggests that AI is still at an exploratory stage in many organizations, with structured assessments yet to come.

POLICIES AND GOVERNANCE
Few organizations reported having a formal AI policy in place - less than 10 percent of responses. However, 27 percent shared that policy discussions are underway. This indicates a recognition that governance will be important, even if most governments are not there yet.

TRAINING AND CAPACITY
Training opportunities remain rare. Over 80 percent of respondents said their organizations do not currently provide AI training. Over 12 percent responded they do not currently provide AI training but noted that discussions are happening or training is under consideration.

PLATFORMS IN USE
When asked which AI platforms are being used, 100 percent of those that responded stated they were using ChatGPT, Microsoft Copilot, or both. This suggests that when adoption does occur, it tends to focus on familiar, user-friendly tools.

The Next Quarterly Question Will be on | Permissive Tax Exemptions & Grants in Aid

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